The Strategy Behind Abercrombie’s 250% Stock Surge
Summary
Mike and Drew talk about how Abercrombie’s focus on nostalgia and millennials sparked a brand resurgence. Here's the strategy behind their turnaround.
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Transcript
Abercrombie said the stocks up 250 % since 2020. So break it down for us. Like what happened at these brands?
Yeah, well, think starting with Abercrombie, I've read a bunch about this and their CEO is Fran Horowitz. She's been at the brand since 2017. So this isn't, this was like a longer term strategy, this was turnaround that took some time, but now they are just killing it. And from what I've read, you know, it's really about knowing your lane and zeroing in on your core customer.
And so when a lot of these other brands were chasing sort of that Gen Z customer, they went all in on millennials more in that like 25 to 35 year old bucket who maybe still had some memory of the brand or was familiar with the brand and plays a little bit to that nostalgia.
And then really like redesigned the whole aesthetic, toned down. So again, no models, no splashing you with cologne as you walk in the store, you know, made it relevant again, but still played up that sort of nostalgic element.